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Final Project Company Profile for Ulta Cosmetics, Fragrance and Salon Dawn Scheidel Bish LIS 613

Ulta Cosmetics, Fragrance and Salon

Dawn Bish

Table of Contents
Company Profile . History. . Balance Sheet... . Income Statement. . Tear Sheet. . 2 5 6 7 9 10 11 12 13 16 17 19 20 21 22 24 26 31 34 37

Industry Report.. . Equity Reports... . Five Year Stock Report . Business Ratios Industry Ratios.. Associations Revenue Outlook. . . . .

Marketing . Economy Consumer Confidence. Basic Demographics Consumer Expenditure Comparison Report Export Data Country Data. Conclusion. . . . . . . .

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Ulta Cosmetics, Fragrance and Salon

Dawn Bish

Company Profile
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Company Name: Ulta Salon, Cosmetics and Fragrance Executive Director: Lynn P. Kirby Address: 1000 Remington Blvd # 120 Bolingbrook, IL 60440 Telephone Number: (630) 410-4800 Fax Number: (630) 378-4583 SIC Code: 5999-92 NAICS Code: 44612001 Description: Cosmetics and Perfumes, Retail ULTA Salon, Cosmetics & Fragrance is one of the leading beauty retailers that provides salon products and services in the United States. The salon offers over 21,000 prestige and mass beauty products across the categories of cosmetics, fragrance, hair and skin care and salon styling tools. It provides skin care services for body, eyes, face, hands and lips. ULTA Salon, Cosmetics & Fragrance offers cosmetic bags and train cases from various manufacturers, such as Celebrity, Japonesque and Paris Presents. The salon provides body cleansers, moisturizers and treatment, as well as hair removal products. It additionally maintains a gift center. Ticker Symbol: ULTA Stock Exchange: NASDAQ2

Ulta. (n.d.). Retrieved January 22, 2011, from Ulta: http://www.ulta.com/

Ulta Salon, Cosmetics and Fragrance detail. (n.d.). Retrieved January 22, 2011, from ReferenceUSA: http://libproxy.uncg.edu:2306/UsBusiness/Detail/Tagged/55c38719bdc14dac88d3699e9a00 7874?recordId=643804206

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Ulta Salon, Cosmetics and Fragrance detail. (n.d.). Retrieved January 22, 2011, from ReferenceUSA: http://libproxy.uncg.edu:2306/UsBusiness/Detail/Tagged/55c38719bdc14dac88d3699e9a00 7874?recordId=643804206

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Ulta Cosmetics, Fragrance and Salon

Dawn Bish

History5 Ulta began in 1990 as a company offering a plethora of cosmetic brands from drug store brands to higher end prestige brands such as Smashbox, Urban Decay and Bare Escentuals, as well as fragrances and a full service salon. As a one stop shop, Ulta is in a distinctive position in the market as they are able to compete with drugstores such as CVS and Target, as well as department stores such as Macys and Nordstroms. Ulta began as Ulta3 which stood for the abbreviation of Ultimate Beauty Store and the number 3 stood for cosmetics, salon and fragrance. The executives changed the name to Ulta and began marketing to college educated women around 2000. The first store was 6,000 square feet with a 2500 square foot full service hair and nail salon. The store became a publicly traded business in October of 2007. Ultas next step is to have 1,000 stores by 2017.

Ulta Salon, Cosmetics and Fragrance detail. (n.d.). Retrieved January 22, 2011, from ReferenceUSA: http://libproxy.uncg.edu:2306/UsBusiness/Detail/Tagged/55c38719bdc14dac88d3699e9a00 7874?recordId=643804206

Ulta History. (2011). Retrieved February 9, 2011, from Business and Company Resource Center: http://libproxy.uncg.edu:2134/servlet/BCRC? vrsn=unknown&locID=gree35277&srchtp=glbc&cc=1&c=1&mode=c&ste=74&tbst=tsCM& tab=4&ccmp=Ulta+Salon %2C+Cosmetics+and+Fragrance+Inc.&mst=Ulta&n=25&docNum=I2501311953&bConts= 9151

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6 Ulta Salon, Cosmetics and Fragrance. (2011). Retrieved January 26, 2011, from Mergent Online: http://libproxy.uncg.edu:2260/companyfinancials.php? pagetype=asreported&compnumber=122122&period=Annuals&dataarea=BS&range=5&currency=AsRep& scale=AsRep&Submit=Refresh&isprintpage=1

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7 Ulta Salon, Cosmetics and Fragrance. (2011). Retrieved January 26, 2011, from Mergent Online: http://libproxy.uncg.edu:2260/companyfinancials.php? pagetype=asreported&compnumber=122122&period=Annuals&dataarea=BS&range=5&currency=AsRep& scale=AsRep&Submit=Refresh&isprintpage=1

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Ulta Cosmetics, Fragrance and Salon

Dawn Bish

Liabilities and stockholders' equity8 Current liabilities: Current portion notes payable Accounts payable Accrued liabilities Accrued income taxes Total current liabilities Notes payable less current portion Deferred rent Deferred income taxes Total liabilities Commitments and contingencies (note 4) Stockholders' equity: Common stock, $.01 par value, 400,000 shares authorized; 58,674 and 58,245 shares issued; 58,169 and 57,740 shares outstanding; at January 30, 2010, and January 31, 2009, respectively Treasury stock-common, at cost Additional paid-in capital Accumulated deficit Accumulated other comprehensive loss Total stockholders' equity Total liabilities and stockholders' equity

56,387 59,189 10,781 126,357 113,718 20,952 261,027

$ 18,000 47,811 51,202 117,013 88,047 101,288 17,616 323,964

586 (4,179) 300,701 (4,500) 292,608 $ 553,635

582 (4,179) 293,052 (43,856) (631) 244,968 $ 568,932

Ulta SEC filings. (2010). Retrieved January 27, 2011, from Ulta Salon, Cosmetics and Fragrance: http://ir.ulta.com/phoenix.zhtml?c=213869&p=irol-sec

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Ulta Cosmetics, Fragrance and Salon

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Value Line Tear Sheet for Ulta Salon

Ulta Salon. (2011, February 4). Retrieved February 4, 2011, from Value Line: http://www3.valueline.com/secure/vlispdf/stk1700/vlispdf/f98194.pdf

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Industry Report for Retail (special lines) from Value Line

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Industry data for retail special lines. (2011, February 4). Retrieved February 4, 2011, from Value Line: http://www3.valueline.com/secure/vlispdf/stk1700/vlisind/F10149.pdf

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Equity Report From Mergent

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11 Ulta Salon, Cosmetics and Fragrance, Inc. (2011, February 4). Retrieved February 4, 2011, from Mergent: http://libproxy.uncg.edu:2260/equitypricing.php?compnumber=122122

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Five Year Stock Report from Yahoo Finance

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Ulta Salon Cosmetics and Fragrance. (2011, February 2). Retrieved February 3, 2011, from Yahoo Finance: https://blackboard.uncg.edu/webapps/portal/frameset.jsp? tab=courses&url=/bin/common/course.pl?course_id=_93068_1

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Ulta Cosmetics, Fragrance and Salon Business Ratios ULTA SALON COSMETICS & FRAGRANCE13 FISCAL YEAR END Quick Ratio Current Ratio Sales/Cash SG&A/Sales Receivables Turnover Receivables Days Sales Inventories Turnover Inventories Days Sales Net Sales/Working Capital Net Sales/Net Plant & Equipment Net Sales/Current Assets Net Sales/Total Assets Net Sales/Employees Total Liabilities/Total Assets Total Liabilities/Invested Capital Total Liabilities/Common Equity Times Interest Earned Current Debt/Equity Long Term Debt/Equity Total Debt/Equity Total Assets/Equity Pretax Income/Net Sales Pretax Income/Total Asset Pretax Income/Invested Capital Pretax Income/Common Equity Net Income/Net Sales Net Income/Total Assets Net Income/Invested Capital Net Income/Common Equity R & D Expenditures/Net Sales R & D Expenditures/Net Income R & D Expenditures/Employees
13

Dawn Bish

1/30/20 10 0.38 2.08 304.4 0.25 27.95 12.88 5.91 60.93 8.96 4.2 4.65 2.21 0.47 0.89 0.89 30.95 1.89 0.05 0.12 0.23 0.23 0.03 0.07 0.13 0.13 -

1/31/20 09 0.39 2.36 298.14 0.26 25.48 14.13 5.08 70.9 6.79 3.71 3.92 1.91 0.57 0.97 1.32 11.74 0.07 0.36 0.43 2.32 0.04 0.07 0.13 0.17 0.02 0.04 0.08 0.1 -

2/2/20 08 0.22 2.05 240.73 0.26 44.19 8.15 5.18 69.51 7.79 3.86 3.98 1.94 0.55 0.9 1.22 10.29 0.35 0.35 2.22 0.05 0.09 0.15 0.2 0.03 0.05 0.09 0.12 -

Ulta Ratios. (2011, February 21). Retrieved February 21, 2011, from Lexis Nexis Academic: http://libproxy.uncg.edu:2086/hottopics/lnacademic/

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Ulta Cosmetics, Fragrance and Salon Price Earnings Ratio

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Industry Ratios for NAICS Code: Cosmetics, Beauty Supplies, and Perfume Stores : 446120 Current Ratios 14

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EStatement Current Ratios. (2011, February 21). Retrieved February 2011, 2011, from RMA: http://libproxy.uncg.edu:8077/ssGraph.aspx? ID=446120&Year=2010&Region=0&Section=A&Proc=graph_frb&Line=38

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Quick Ratios15

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EStatements Quick Ratios. (2011, February 21). Retrieved February 21, 2011, from RMA: http://libproxy.uncg.edu:8077/ssGraph.aspx? ID=446120&Year=2010&Region=0&Section=A&Proc=graph_frb&Line=39

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Dun and Bradstreet Industry Ratios for SIC code 5999 16

16

Industry norms and key business ratios. (2009/2010). New York: Dun & Bradstreet Credit Services.

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Dawn Bish

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Ulta Cosmetics, Fragrance and Salon

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Associations that cater to the cosmetics and fragrance industry: The first association attributed to the cosmetics and fragrance industry is Personal Care Products Council. The website is: http://www.personalcarecouncil.org/. The main function of this association is to promote safety, inform consumers, advance science and harmonize global standards 17 It produces a number of publications including but not limited to the following: International Cosmetic Ingredient Dictionary and Handbook, International Regulatory Database, Labeling Manual: A Guide to Cosmetic and OT C Drug Labeling, The International Buyers Guide and Advertising, Eighth Edition. 18 Ulta does not belong to this association. The second association is the Independent Cosmetics Manufacturers and Distributors at http: www.icmad.org. The main focus of this association is to represent, educate and foster entrepreneurship.19 ICMAD publications include:

17

Personal Care Council Annual Report. (2011, March 2). Retrieved March 2, 2011, from Personal Care Council: http://www.personalcarecouncil.org/sites/default/files/2008CouncilAnnualReport.pdf
18

Personal Care Council Bookstore. (2011, March 2). Retrieved March 2, 2011, from Personal Care Council: http://www.personalcarecouncil.org/council-bookstore
19

International Cosmetics Manufacturers and Distributors. (2011, March 2). Retrieved March 2, 2011, from International Cosmetics Manufacturers and Distributors: http://www.icmad.org/ Page | 18

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Trade publications include Cosmetics International and International Journal of Cosmetic Science. Both of these resources can be found on the Jackson Library website in Journal Finder. There was a plethora of information found on Business Source Premiere database for articles relating to the cosmetics industry. One of the most interesting articles I found was in Global Cosmetics Industry. The article was entitled Want to win consumers? Satisfy specific beauty needs. The article summarized a study completed by About.com in which women stated that beauty products were a necessity and that most women will purchase beauty products even while watching their budgets.21 The article goes on to state that beauty products for most women are non-negotiable as they are an important part of life and necessary to help maintain their look. 22 This bodes well for the future of the cosmetics industry if women believe that cosmetics and hair care are an invaluable part of their lives that they cannot live without. I guess the saying that women cant live without their lipstick is true. The next article was found in Marketing Weekly News. This article pertained to Ulta specifically in that they reported an 18.4% percent increase from 2010 in holiday sales. This is a significant increase in what was expected for the holiday season 2010.23 The company expects an increase in sales for fourth quarter to be 8% to 9% instead of the predicted 4% to 6%.24

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International Cosmetics Manufacturers and Distributors. (2011, March 2). Retrieved March 2, 2011, from International Cosmetics Manufacturers and Distributors: http://www.icmad.org/

21

Want to win consumers? Satisfy specific beauty needs. (2011). Global Cosmetics Industry, 10.

22 IBID 23

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The Food and Drug Administration is responsible for federal oversight of the cosmetic industry. The FDA is charged with ensuring the safety of all cosmetics sold in the United States. The Food and Drug Administrations contact information is as follows: 5600 Fishers Lane, Rockville, MD 20857 Phone, 8884636332. Internet, www.fda.gov. Commissioner: Margaret Hamburg 25

Outlook for the Cosmetics Industry: Here is a chart from IBIS World which shows the revenue outlook for the beauty, cosmetics and fragrance stores. 26 Revenue Outlook Year 2011 2012 2013 2014 2015 2016 2017 Revenue $Mill 12,617.5 13,023.6 13,499.1 14,214.4 14,756.0 15,361.2 15,809.2 Growth % 3.2 3.7 5.3 3.8 4.1 2.9

Anonymous. (2011). Ulta salon, cosmetics and fragrace, inc.; Ulta announces holiday sales results. Marketing Weekly News, 72.

24 IBID 25

Department of Health and Human Services. (2011, March 15). Retrieved March 15, 2011, from Government Printing Office: http://www.gpo.gov/fdsys/pkg/GOVMAN-2009-0915/pdf/GOVMAN-2009-09-15-Pg212.pdf

26

Industry Outlook for beauty, cosmetics and fragrance stores. (2011, March 17). Retrieved March 17, 2011, from IBIS World: http://www.ibisworld.com/industryus/industryoutlook.aspx? indid=1055

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According to IBIS World, the industry outlook for cosmetic retailers will improve over the next five years as disposable income will increase allowing more purchasing power for the consumers. However, this increase will be nominal in 2011. IBIS World indicates that there is a growing market for green or organic cosmetics as consumers are starting to express concern over the growing number of substances that can leach into the body from cosmetics. There are only a few companies that cater to this type of product but the demand will increase. According to IBIS World:
Manufacturers have plenty of room and incentive to expand into natural products. As of February 2011, no Food and Drug Administration (FDA) regulations control the use of the word "organic" on beauty product labels and packages. A movement toward standardization would carve out a new path of production, potentially changing the personal-care supply chain drastically: Operators unable to prove their products' organic makeup will lose out on profit and market share.27

One of the challenges facing the cosmetic market will be saturation in the market. Stores will continue to open and these stores will all be competing for the same customers.28

Summary of Marketing Article Company: Ulta Article: Beyer, A. (2011). Marketing Matters: Testing, testing...1,2,3. Global Cosmetic industry, 26-27. I found this article by searching ABInform with the key word search terms anti-aging, cosmetics and marketing. This led me to quite a number of articles, but this particular article was found by perusing the online publication of Global Cosmetic Industry. The above article, Marketing Matters: Testing, testing1, 2, 3 deals with the theory of product concept testing and how important this is prior to launching a new product. According to AccuPoll, up to 95% of new product launches fail each year (Beyer, 2011). To prevent the failure of new product launches, this article addresses the need for gathering information by testing new concepts with consumers prior to the products launch. There are three important aspects to product concept testing, gathering the correct information, using the correct language and using the right images (as well as the right name for the product). Gathering
27 Ibid 28 Ibid

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the correct information is important and should include such information as: name, reason to believe in the product as well as what the product is promising the consumer. These should be the important factor a brand is looking for when testing a product concept. The article encourages the brand to write in the language that the consumer uses and not to add industry jargon. It also cautions against overwriting as well as making things too simple. A balance needs to be made in providing the consumer with the correct information that is easy to understand, not too simplistic and concise. The third aspect using the right images, encompasses using generic images that does not get in the way of obtaining the information the brand is seeking which is what is making the consumer buy into the product. By losing the distraction of what a product looks like, it allows the brand to obtain more accurate information. This article was a good, concise argument for effective product development which needs to include product concept testing.

The Economy For any business, the state of the economy is an important indicator on how that business will perform. For a company such as Ulta, which sells goods that people do not depend on to live (such as food, housing and clothing), this is especially important to the livelihood of the business. In looking at the state of the economy, good indicators of how well a business such as Ulta would include but is not limited to: unemployment rate, consumer spending, consumer confidence and the consumer price index. Unemployment Rate:

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Consumer Spending

30

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The Employment Situation. (2011, March 31). Retrieved March 31, 2011, from Bureau of Labor Statistics: http://www.bls.gov/news.release/pdf/empsit.pdf

30

National Economic Trends. (2011, March 31). Retrieved March 31, 2011, from Federal Reserve Bank of St. Louis: http://research.stlouisfed.org/publications/net/20110101/netpub.pdf

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Consumer Confidence The Conference Board Consumer Confidence Index, which had increased in February, declined in March. The Index now stands at 63.4 (1985=100), down from 72.0 in February. The Present Situation Index improved to 36.9 from 33.8. The Expectations Index decreased to 81.1 from 97.5 last month.33
31

National Economic Trends. (2011, March 31). Retrieved March 31, 2011, from Federal Reserve Bank of St. Louis: http://research.stlouisfed.org/publications/net/20110101/netpub.pdf

32

National Economic Trends. (2011, March 31). Retrieved March 31, 2011, from Federal Reserve Bank of St. Louis: http://research.stlouisfed.org/publications/net/20110101/netpub.pdf

33

Consumer Confidence Survey. (2011, March 31). Retrieved March 31, 2011, from The Conference Board: http://www.conference-board.org/data/consumerconfidence.cfm

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Consumer Price Index

34

Adjusted Monetary Base

34

Consumer Price Index. (2011, March 31). Retrieved March 31, 2011, from Bureau of Labor Statistics: http://www.bls.gov/news.release/cpi.t01.htm

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Basic Demographics Ultas headquarters are located in Bolingbrook, IL, which is right outside of Chicago. The following are some basic demographic information found on the community of Bolingbrook.

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Monetary Trends. (2011, March 31). Retrieved March 31, 2011, from Federal Reserve Bank of St. Louis: http://research.stlouisfed.org/publications/mt/20110401/mtpub.pdf

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State Household Income Report. (2011, April 16). Retrieved April 16, 2011, from Easidemographics: http://www.easidemographicsondemand.com/samples/eBookExecTSample.pdf

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Fact Sheet for Bolingbrook, IL. (2011, April 16). Retrieved April 16, 2011, from US Census Bureau: http://factfinder.census.gov/servlet/ACSSAFFFacts? _event=&ActiveGeoDiv=geoSelect&pctxt=fph&_lang=en&_sse=on&geo_id=16000US17071 33&_state=04000US17 Page | 28

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Date: 04/08/11 Current Geography Selection: (1 Selected) Places: Bolingbrook

Consumer Expenditure Comparison Report


Bolingbrook

Spring 2010 Consumer Expenditures (Average Household Annual Expenditures):

Total Households Median Household Income

21,474 $81,140

Total Average Household Expenditure

$67,137

Airline Fares Alcoholic Beverages Alimony And Child Support Apparel Apparel Services And Accessories Audio Equipment Babysitting And Elderly Care Books Books And Supplies Boys Apparel Cellular Phone Service Cigarettes Computer Hardware Computer Information Services Computer Software Contributions Coolant And Other Fluids Cosmetics and Perfume Deodorants and Other Personal Care Products Education Electricity Entertainment Fees And Admissions Finance Charges Excluding Mortgage And Vehicle Floor Coverings

$509.40 $784.93 $358.95 $3,229.12 $530.88 $111.71 $608.01 $79.81 $241.99 $161.99 $505.73 $350.07 $487.00 $230.83 $37.80 $2,556.62 $10.30 $136.82 $37.66 $1,726.90 $1,618.37 $3,799.99 $1,039.94 $703.79 $110.20

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Fuel Oil And Other Fuels Funeral And Cemetery Furniture Gasoline And Oil Gifts Girls Apparel Hair Care Hard Surface Flooring Health Care Health Care Insurance Health Care Services Health Care Supplies And Equipment Household Services Household Supplies Household Textiles Housewares And Small Appliances Indoor Plants And Fresh Flowers Infants Apparel Jewelry Legal And Accounting Magazines Major Appliances Mass Transit Men's Apparel Mortgage Interest Natural Gas New Car Purchased New Truck Purchased New Vehicle Purchase Newspapers Oral Hygiene Products Other Lodging Other Miscellaneous Expenses Other Repairs And Maintenance Other Tobacco Products Other Transportation Costs Other Utilities Paint And Wallpaper Personal Care Products Personal Care Services

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$169.09 $120.06 $850.20 $2,963.55 $1,828.79 $224.94 $74.62 $35.62 $3,858.83 $1,860.16 $940.17 $1,058.50 $450.91 $1,121.98 $211.78 $1,561.20 $99.56 $147.31 $213.19 $131.59 $44.70 $343.56 $136.78 $615.16 $5,670.31 $632.37 $1,677.13 $1,997.55 $3,674.68 $93.18 $34.72 $826.54 $135.15 $201.88 $38.99 $782.80 $527.94 $88.83 $225.36 $647.81

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Personal Insurance Pet Supplies And Services

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$716.82 $364.34

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Public Transportation Records / Tapes / CD Purchases Recreational Equipment And Supplies Rental Costs Roofing And Siding Satellite Dishes Shaving Needs Shelter Telephone Service Excl Cell Phones Televisions Transportation Tuition Used Car Purchase Used Truck Purchase Used Vehicle Purchase VCRs And Related Equipment Vehicle Insurance Vehicle Repair Vehicle Repair And Maintenance Video And Audio Equipment Video Game Hardware And Software Watches Women's Apparel

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$790.36 $176.97 $1,482.79 $2,373.85 $110.27 $13.91 $16.16 $13,025.54 $999.71 $162.94 $13,545.28 $1,484.91 $1,093.36 $960.72 $2,054.08 $66.97 $1,497.66 $1,025.43 $1,035.72 $1,277.27 $41.20 $39.16 $1,054.18

Bolingbrook

2015 Consumer Expenditures (Ave HH Exp):

Total Households Median Household Income

22,862 $86,353

Total Average Household Expenditure

$69,808

Airline Fares Alcoholic Beverages Alimony And Child Support Apparel Apparel Services And Accessories Audio Equipment Babysitting And Elderly Care Books

$536.04 $821.00 $377.67 $3,360.53 $559.15 $115.75 $637.77 $83.09

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Cigarettes Computer Hardware Computer Information Services Computer Software Contributions Coolant And Other Fluids Cosmetics and Perfume Deodorants and Other Personal Care Products Education Electricity Entertainment Fees And Admissions Finance Charges Excluding Mortgage And Vehicle Floor Coverings Food And Beverages Food At Home Food Away From Home Footwear Fuel Oil And Other Fuels Funeral And Cemetery Furniture Gasoline And Oil Gifts Girls Apparel Hair Care Hard Surface Flooring Health Care Health Care Insurance Health Care Services Health Care Supplies And Equipment Household Services Household Supplies Household Textiles Housewares And Small Appliances Indoor Plants And Fresh Flowers Infants Apparel Jewelry Legal And Accounting Magazines Major Appliances Mass Transit Men's Apparel

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$356.43 $508.11 $241.46 $39.44 $2,701.23 $10.65 $142.08 $39.13 $1,831.57 $1,665.54 $3,955.10 $1,096.64 $728.48 $116.87 $10,440.77 $5,264.28 $4,355.49 $510.13 $174.68 $124.56 $888.41 $3,051.84 $1,926.90 $233.56 $77.52 $37.25 $3,981.90 $1,919.15 $970.44 $1,092.32 $473.85 $1,178.08 $220.32 $1,629.29 $103.86 $152.82 $224.62 $136.32 $46.54 $357.37 $143.84 $639.25

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New Truck Purchased New Vehicle Purchase Newspapers Oral Hygiene Products Other Lodging Other Miscellaneous Expenses Other Repairs And Maintenance Other Tobacco Products Other Transportation Costs Other Utilities Paint And Wallpaper Personal Care Products Personal Care Services Personal Insurance Pet Supplies And Services Photographic Equipment And Supplies Plumbing And Heating Property Taxes Public Transportation Records / Tapes / CD Purchases Recreational Equipment And Supplies Rental Costs Roofing And Siding Satellite Dishes Shaving Needs Shelter Telephone Service Excl Cell Phones Televisions

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$2,080.78 $3,828.55 $97.06 $36.06 $877.41 $139.93 $211.17 $39.68 $818.20 $545.19 $92.82 $234.05 $672.46 $753.76 $377.33 $167.53 $85.14 $2,481.33 $831.76 $183.37 $1,535.40 $2,416.75 $115.27 $14.42 $16.78 $13,575.82 $1,030.87 $168.72

Current year data is for the year 2010, 5 year projected data is for the year 2015. More About Our Data. Demographic data 2010 by Experian/Applied Geographic Solutions.38

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Demographics Now Bolingbrook, IL. (2011, April 8). Retrieved April 8, 2011, from Deomgraphics Now: http://library.demographicsnow.com

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Export Data: The following chart shows the top five countries that the United States exports to. This is the total merchandise exported from the United States.

39

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Global Patterns of U.S. Merchandise Trade . (2011, April 16). Retrieved April 16, 2011, from nternational Trade Administration: http://tse.export.gov/TSE/MapDisplay.aspx

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LIS 613

An article found on Export.gov, shows a promising increase in the market for color cosmetics in Germany. The largest product group in the color cosmetics market was eye make-up, accounting for 37% (EUR 409.6 million) of total sales in 2008, an increase of 8.7% compared with 2007. All subsegments, such as mascara, eye shadow and eyeliner, greatly improved their overall sales performance with eyeliners being in demand the most. Mascara has overtaken lipstick as the product most frequently bought by consumers and is expected to further increase its sales in the future.40 Below shows the market share for the top cosmetic companies in Germany.

41

40

Kirst, U. L. (2011, April 16). Germany: Color Cosmetics. Retrieved April 16, 2011, from Export.gov: http://www.buyusainfo.net/docs/x_5794224.pdf

41 Ibid

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LIS 613

Most cosmetics in Germany are sold in pharmacies and drugstores with 53% of the cosmetics sold there.42 Perfumeries and specialty stores account for 31% of the sales of color cosmetics, with department stores and other retail stores selling 8% each.43 This may be a good starting point for Ulta to go international by starting in the German market.

44

42 Ibid 43 Ibid 44 Ibid

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LIS 613

Data for Germany

45

45

Germany: Area and Population. (2011, April 16). Retrieved April 16, 2011, from Europa World: http://libproxy.uncg.edu:2644/entry/de.ss.2

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Dawn Bish

LIS 613

According to Europa World, Germany is the largest economy in Western Europe. 46 At the end of 2007, Germany officially entered a recession. 47 A continued decline in growth was shown through 2009, with the decrease in demand for Germanys exports including cars and machinery, however, there has been an upswing of 1 to 2% of demand predicted in 2010 which will help with Germanys economy. 48 The following shows Germanys main import and export partners:

46

Germany: Economic Affairs. (2011, April 16). Retrieved April 16, 2011, from Eurpopa World: http://libproxy.uncg.edu:2644/entry/de.is.59

47 Ibid 48 Ibid

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Ulta Cosmetics, Fragrance and Salon

Dawn Bish

LIS 613

49

49

Germany: external trade. (2011, April 16). Retrieved April 16, 2011, from Europa World: http://libproxy.uncg.edu:2644/entry/ropafms2.ss.8

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Ulta Cosmetics, Fragrance and Salon

Dawn Bish

LIS 613

50

Conclusion:

50 Ibid

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Ulta Cosmetics, Fragrance and Salon

Dawn Bish

LIS 613

The company, Ulta, is a unique entity in the fact that it sells prestige cosmetics alongside drugstore cosmetics. Ulta also boasts a full service salon which not only does haircuts and coloring, but facials, hair removal and nail care services. The cosmetic industry has remained solid throughout the economic crisis due in part to the industrys ability to adapt to its consumers and the consumer requiring quality cosmetic products despite decrease in spending money available. As stated earlier in this report women have to have their lipstick. At the beginning of this process in developing this report, this author was not familiar with business resources and what data and information would be needed or where to find said information. This author may not understand all the information gathered here but will be able to assist a patron in where the best place will be to find the necessary information.

Sale of Stocks: Bought: 36.05 on January 25, 2011 Sold: 50.07 on April 17, 2011 Profit: 1402.00 Percentage of Profit: 39%

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